Kuwait Finance House K.s.c. · KSE:KFH
Kuwait Finance House K.s.c — Kuwait Finance House — FY2023 Earnings Presentation
22 slides from Kuwait Finance House K.s.c's earnings presentation, Feb 6, 2024
Slide 1: FY-2023 Earnings Presentation
FY-2023 EarningsPresentation 06 February2024 © Kuwait Finance House, 2024
Slide 2: Disclaimer
Disclaimer • IMPORTANT NOTICE • This presentation has been prepared by Kuwait Finance House and is subject to the applicable laws and regulations in the State of Kuwait. It is for information purposes only and it shall not be reproduced or redistributed to any other person without obtaining Kuwait F
Slide 3: Agenda
1 Kuwait’s Operating Environment 2 Overview of KFH 3 KFH Strategy 4 FY-23 Financial Results 5 Appendix 3
Slide 4: Kuwait's Operating Environment
Boursa Market Capitalization YE 2023 40.3 Kuwait Oil Closing Prices GDP Constant Price Average Annual Inflation -13.8% USD KWD Billion % Y-o-Y % YE 2022 46.7 130 43 42.5 5 120 42 40.8 4.0 KWD Billion 41 4 3.4 3.4 110 39.6 39.4 3.1 40 2.8 KFH Kuwait Market Capitalization 39 3 100 38 90 36.4 2 YE 2023
Slide 5: Overview of KFH's Awards & Ratings
Overview of KFH’s Awards & Ratings Kuwait Regional Global Bank of the Best Best Year Islamic Bank Islamic Financial Institution The Banker in the Middle East in the World Global Finance Global Finance Long-Term Issuer Default Rating A LT FC Bank Deposits Rating A2 Short-Term Issuer Default Rating F1
Slide 6: Overview of KFH Branches
Overview of KFH 86 Branches Kuwait Germany 10 Branches Iraq 6 Branches UK Turkey 444 Branches 1 Branches Egypt 42 Branches 9 Branches 30 Branches Malaysia Bahrain 6
Slide 7: Robust Financial Performance and Key Strengths
Leading Strategic Effective Risk Robust Financial Strong Government Professional Islamic Financial Distribution Management Performance Sponsorship Management Team Institution Channels Framework A consistent track Second largest Islamic 38.4% ownership by Well-rounded human Diversified KFH continuous
Slide 8: KFH Strategy
KFH Strategy KFH’s main focus is on core banking business activities Simplify experience Digitize operations Grow business Across all four main business sectors Retail Corporate Private Treasury 8
Slide 9: Agenda: FY-23 Financial Results
1 Kuwait’s Operating Environment 2 Overview of KFH 3 KFH Strategy 4 FY-23 Financial Results 5 Appendix This is a General Document and should not be shared with unauthorized users. 9
Slide 10: FY-23 Financial Highlights
FY-23 Financial Highlights Net Profit for Shareholders Net Financing Net Operating Income Income KD 584.5 m KD 965.9 m KD 945.4 m 63.4% 20.7% 30.7% Cost to Income Ratio EPS (fils) 35.28% 38.49 (2022: 32.55%) (2022 : 29.71fils) This is a General Document and should not be shared with unauthorized use
Slide 11: FY-23 Financial Performance
FY-23 Financial Performance Net Profit Financing Net Financing Net Operating for Shareholders Income Operating Income Profile Income Income (KD mn) (KD mn) (KD mn) (KD mn) Investment Income (%) Non-Financing Income (%) 30.7% Net Financing Income (%) 63.4% 65.9% 945.4 20.7% 4.12% 12.61% 584.5 2,194.2
Slide 12: FY-23 Financial Performance: Non-Financing Income and Expenses
FY-23 Financial Performance Non - Financing Total Operating Income (KD mn) Expenses (KD mn) Other Income Depreciation and Amortization Net Gain from Foreign Currencies Other Operating Expenses Fees and Commission Income Staff Costs Investment Income 515.4 C/I C/IRatio Ratio 494.9 78.6 34.1 9M-22, 9M
Slide 13: FY-23 Financial Performance: Margin and Provisions
FY-23 Financial Performance Average Profit Earning Assets (KD bn) Net Financing Margin Net Monetary Loss* (KD mn) 3.36% 2.92% 2.68% 127.6 34.7% 25.9% 2021 2022 2023 72.8 Provision and Impairment (KD mn) 29.1 44.4 23.1 6.5 62.1 44.6 4.4 17.1 31.0 2.7 39.1 2022 2023 78.4 22.5 18.7 28.2 * Hyper-inflati
Slide 14: FY-23 Financial Performance: Assets and Funding
FY-23 Financial Performance Total Net Investment in debt Depositors’ Assets Financing securities Accounts Funding Mix (KD bn) (KD bn) (KD bn) (KD bn) 156.2% 37.5% Depositors Accounts 74.5% 71.1% 3.7% Due to Banks & FI's 2.8% 3.3% 15.1% 37.0 38.0 Sukuk Payable 7.0 21.8 21.0* 1.2% 2.7% 2.1% 18.8 19.4
Slide 15: FY-23 Key Financial Ratios
FY-23 Key Financial Ratios Return on Average Return on Average Return on Average C/I (%) EPS (fils) Tangible Equity (%) Equity (%) Assets (%) 38.49 20.51% 16.48% 13.19% 1.82% 29.71 11.08% 1.69% 35.28% 32.55% 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 This is a General Document and should not
Slide 16: Q&A
Q&A This is a General Document and should not be shared with unauthorized users. 16
Slide 17: Appendix
Appendix This is a General Document and should not be shared with unauthorized users. 17
Slide 18: FY-23 Capital & Asset Quality Ratios
FY-23 Capital & Asset Quality Ratios Capital Adequacy CET1 (%) TIER 1 (%) NPF (%) NPF Coverage Ratio (%) Ratio (%) 341% 1.60% 1.51% 326% 308% 18.69% 17.66% 18.18% 1.32% 17.16% 15.99% 16.43% 15.20% 13.94% 13.57% 2021 2022 2023 2021 2022 2023 2021 2022 2023 2021 2022 2023 2021 2022 2023 This is a Gene
Slide 19: Consolidated Financial Statements 2023 Vs. 2022
Consolidated Financial Statements 2023 Vs. 2022 Consolidated Statement of Financial Position (KD million) Dec-23 Dec-22 Consolidated Statement of Income (KD million) Dec-23 Dec-22 Cash and balances with banks and financial institutions 3,612 3,156 Financing income 2,194 1,322 Due from Banks 2,971 3,
Slide 20: Consolidated Statement of Financial Position 2019 - 2023
Consolidated Statement of Financial Position 2019 - 2023 Consolidated Statement of Financial Position (KD million) 2019 2020 2021 2022 2023 Cash and balances with banks and financial institutions 1,910 2,491 2,325 3,156 3,612 Due from Banks 3,646 3,365 3,350 3,870 2,971 Financing receivables 9,474 1
Slide 21: Consolidated Statement of Income 2019 - 2023
Consolidated Statement of Income 2019 - 2023 Consolidated Statement of Income (KD million) 2019 2020 2021 2022 2023 Financing income 932 893 871 1,322 2,194 Financing cost and distribution to depositors 401 279 286 522 1,228 Net finance income 530 614 586 801 966 Investment income 130 -6 16 44 184 F
Slide 22: Investor Relations Contacts
Investor.relations@kfh.com Anwar.alyahya@kfh.com ohoud.alnetefi@kfh.com 22